DonorsTrust

Last updated

DonorsTrust
Formation1999
TypeNonprofit (IRC § 501(c)(3)) [1]
52-2166327
Location
Coordinates 38°48′20″N77°03′37″W / 38.8056°N 77.0603°W / 38.8056; -77.0603
Services Donor-advised fund
CEO
Lawson Bader [2]
Affiliations Donors Capital Fund
Revenue$323 million [4] (2022)
Expenses$248 million [4] (2022)
Endowment $1.39 billion
Website donorstrust.org OOjs UI icon edit-ltr-progressive.svg

DonorsTrust is an American nonprofit donor-advised fund. It was founded in 1999 with the goal of "safeguarding the intent of libertarian and conservative donors". [5] As a donor advised fund, DonorsTrust is not legally required to disclose the identity of its donors, and most of its donors remain anonymous. [6] [7] It distributes funds to various conservative and libertarian organizations, and has been characterized as the "dark money ATM" of the political right. [6] [8] [9] : 1 

Contents

It is affiliated with Donors Capital Fund, another donor-advised fund. In September 2015, Lawson Bader was announced as the new president of both DonorsTrust and Donors Capital Fund. Bader was formerly president of the Competitive Enterprise Institute and Vice President at the Mercatus Center. [2]

Overview

DonorsTrust is a 501(c)(3) organization. [1] As a public charity and a donor-advised fund, DonorsTrust offers clients a variety of tax advantages compared to a private foundation. [10]

DonorsTrust accepts donations from charitable foundations and individuals. [11] Grants from DonorsTrust are based on the preferences of the original contributor, and the organization assures clients that their contributions will never be used to support politically liberal causes. [12] [13] As a donor advised fund, DonorsTrust can offer anonymity to individual donors, with respect to their donations to DonorsTrust, as well as with respect to an individual donor's ultimate grantee. [12] [14] [15] [16]

As a donor advised fund and public charity, DonorsTrust accepts cash or assets from donors, and in turn creates a separate account for the donor, who may recommend disbursements from the fund to other public charities. [15] DonorsTrust requires an initial deposit of $10,000 or more. [17] [18] DonorsTrust is associated with Donors Capital Fund. DonorsTrust refers clients to Donors Capital Fund if the client plans to maintain a balance of $1 million or more. [19] [20] DonorsTrust president Lawson Bader said the goal of the organization is to "safeguard the intent of libertarian and conservative donors," ensuring that funds are used only to promote "liberty through limited government, responsibility, and free enterprise". [5]

History

DonorsTrust was established in 1999 by Whitney Lynn Ball. [21] According to DonorsTrust, the organization was founded by a group of donors and nonprofit executives who were "actively engaged in supporting and promoting a free society as understood in America's founding documents." [13] A major selling point to donors is that even after their death, their money will continue to fund conservative/libertarian goals, and not change based on the attitudes of their heirs or trustees as a family foundation might. [6] : 1 

In early 2013, DonorsTrust was the subject of reports by The Independent , [22] The Guardian , [11] [12] [23] Mother Jones , [18] [24] and the Center for Public Integrity. [10] Mother Jones described DonorsTrust as having funded a conservative public policy agenda in the areas of labor unions, climate science, public schools, and economic regulations. [18]

In January 2021, CNBC reported that in 2019, DonorsTrust had given millions of dollars to conservative organizations that went on to push claims of election fraud in the 2020 election. [25]

Donors

As of 2013, DonorsTrust had 193 contributors, mostly individuals, and some foundations. [10]

The Charles G. Koch Foundation contributed millions to DonorsTrust since the mid-2000s. [22] [26] [27] Two Koch brothers, Charles and David Koch, were the top contributors to DonorsTrust in 2011, according to an analysis by the Columbia Journalism Review . [28] In 2010, DonorsTrust received a US$2 million grant from the Donors Capital Fund. [14]

DonorsTrust account holders have included the John M. Olin Foundation, the Castle Rock Foundation, the Searle Freedom Trust, and the Bradley Foundation. [10] [29] The Bradley family contributed $650,000 between 2001 and 2010. [18] The DeVos family foundation contributed $1 million in 2009 and $1.5 million in 2010 to Donors Trust. [18]

Robert Mercer and Rebekah Mercer contributed nearly $20 million through DonorsTrust in 2020. [30]

Recipients

From its founding in 1999 through 2013, DonorsTrust and Donors Capital Fund distributed nearly $400 million, and through 2015 $740 million, to various nonprofit organizations, including numerous conservative and libertarian causes. [10] [31] [32] DonorsTrust requires that recipients are registered with the US Internal Revenue Service as a 501(c)(3) public charity. Whitney Ball, the former president of the Trust, told The Guardian in 2013 that it has about 1,600 grantees. [33] In 2014, Ball said that 70 to 75 percent of grants go to public policy organizations, with the rest going to more conventional charities such as social service and educational organizations. [34]

In 2010, the Americans for Prosperity Foundation [35] received a DonorsTrust grant of $7 million, nearly half of the Foundation's revenue that year. [10] Other DonorsTrust recipients have included The Heritage Foundation, Americans for Tax Reform, the National Rifle Association Freedom Action Foundation, the Competitive Enterprise Institute, the Cato Institute, the Federalist Society, the FreedomWorks Foundation, the National Right to Work Legal Defense Foundation, and the Center for Class Action Fairness. [18] [24] [36]

DonorsTrust paid the legal fees of the Project on Fair Representation, a Washington, D.C.–based legal defense fund that assembled the plaintiff's legal team in Fisher v. University of Texas , a 2013 United States Supreme Court case concerning affirmative action college admissions policies. [37] In 2011, the Franklin Center for Government and Public Integrity, an online conservative news organization, received $6.3 million in DonorsTrust and Donors Capital Fund grants, 95 percent of the center's revenue that year. [38] [39]

Other DonorsTrust recipients have included the Foundation for Jewish Camp, Families Against Mandatory Minimums, the James Randi Educational Foundation, the Marijuana Policy Project, [34] [40] [41] , PragerU. [42]

DonorsTrust and Donors Capital Fund distributed nearly $120 million to 102 think tanks and action groups skeptical of the science behind climate change between 2002 and 2010. [12] According to a 2013 analysis by Drexel University environmental sociologist Robert Brulle, between 2003 and 2010, DonorsTrust and Donors Capital Fund combined were the largest funders of organizations opposed to restrictions on carbon emissions. [18] [43] By 2009, approximately one-quarter of the funding of what Brulle calls the "climate change counter-movement" came from grants via DonorsTrust and Donors Capital Fund. [19]

As of 2010, DonorsTrust grants to conservative and libertarian organizations active in climate change issues included more than $17 million to the American Enterprise Institute, a think tank; $13.5 million to the Heartland Institute, a public policy think tank; and $11 million to Americans for Prosperity, a political advocacy group. [23] In 2011, the Committee for a Constructive Tomorrow (CFACT), a conservative Washington, D.C.–based non-profit organization, received $1.2 million from Donors Trust, 40 percent of CFACT's revenue in that year. [14] Climate change writer Wei-Hock "Willie" Soon received hundreds of thousands of dollars from DonorsTrust. [44] [45] In 2015, The Guardian reported that Donors Trust gave $4.3 million to the Competitive Enterprise Institute over three years. [46]

State-based policy funding

Between 2008 and 2013, DonorsTrust granted $10 million to the State Policy Network (SPN), a national network of conservative and libertarian think tanks focused on state-level policy. SPN used the grants to incubate new think tanks in Arkansas, Rhode Island and Florida. DonorsTrust also issued grants to SPN's affiliates at the state level during the same period. The American Legislative Exchange Council, a nonprofit organization of conservative state legislators and private sector representatives that drafts and shares model state-level legislation, is a DonorsTrust recipient. [10]

Project Veritas

The organization donated $1.7 million to Project Veritas, a watchdog group run by conservative activist James O'Keefe, which uses undercover videos to demonstrate the bias in mainstream media organizations and liberal groups. [47] DonorsTrust's relationship with Project Veritas came under scrutiny in 2017 after Project Veritas had one of its operatives contact The Washington Post , falsely claiming to have been impregnated by Roy Moore while she was a teenager. [47]

Elections and the judiciary

In 2018, the organization funded more than 99% of the Judicial Education Project, a legal alias for Honest Elections Project and The 85 Fund. [9] [48] [49]

Board of directors

The board of directors of DonorsTrust includes: [3]

See also

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References

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  30. ↑ Schwartz, Brian (September 15, 2021). "Mercer family played bigger role in 2020 election than thought, giving nearly $20 million to dark money GOP fund". CNBC . Retrieved December 16, 2024. In 2019, the Donors Trust, sent donations to groups such as Turning Point USA, which is led by vocal Trump supporter Charlie Kirk; and the VDARE Foundation, which the Southern Poverty Law Center labeled a hate group.
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